Business, 27.08.2019 04:30 mdoswalt

Water is cheap and brings a diamonds are expensive and bring a a. small deadweight loss; large deadweight loss b. small consumer surplus; large consumer surplus c. large consumer surplus; small consumer surplus d. large deadweight loss; small deadweight loss

Answers: 1

Show answers

Answers

Answer from: divaughn1906

The answer is C. Large consumer surplus; small consumer surplus.

water is cheap, but it carries a large consumer surplus, while diamond is expensive but carries a small consumer surplus.

Further explanation

Paradox is a situation that arises from many premises (what is considered true as a basis for later conclusions/rationale/reason/assumptions/sentences/propositions that are used as the basis for concluding logic), whose truth is recognized that starts from a statement and will arrive to a group of statements that lead to a contradiction or a counterintuitive situation.

The Water and Diamond Paradox

Water that is more useful than diamonds, has a lower price than diamonds. This is a paradox that came from economists in 1800, as a way of understanding the utility in the price of demand for a product by distinguishing between marginal utility and total utility.

This paradox confuses ordinary people, even though water is more important for daily activities, but the price of water is relatively lower compared to the price of diamonds whose function is not so important for human daily activities.

The diamond water paradox results by comparing marginal utility with total utility are as follows:

Marginal utility: It is more satisfying because it gets benefits that are outside the expectations of an item. Total utility: Is the satisfaction of getting benefits by the expectations of an item

Water provides total utility humans, but because of the large amount of water marginal utility water is low. Instead, the total utility of a diamond is very limited, this is supported because of the scarce number of diamonds. Compared to water, all humans don't get any satisfaction from diamonds.

Diamonds have very little total utility because of their scarce numbers. Because human daily activities do not depend on the presence of diamonds. However, due to the limited number of diamonds the marginal utility of diamonds is very high.

Learn more

Paradox ,

Details

Class: College

Subject: Bussines

Keyword: The Water and Diamond Paradox

Answer from: Quest

the answer is d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.

Answer from: Quest

i would say a penny hope it you

Another question on Business

Business, 21.06.2019 18:40

Alyssa works for an engineering firm that has been hired to design and supervise the construction of a highway bridge over a major river. the bridge will be a unique design, incorporating complex designs that will likely never be duplicated. how should alyssa deal with designing and overseeing the building of the bridge?

Answers: 3

Answer

Business, 21.06.2019 23:00

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

Answers: 2

Answer

Business, 22.06.2019 03:00

Match each item to check for while reconciling a bank account with the document to which it relates. (there's not just one answer) 1. balancing account statement 2. balancing check register a. nsf fees b. deposits in transit c. interest earned d. bank errors

Answers: 3

Answer

Business, 22.06.2019 03:00

Put each of them in order. you are a young entrepreneur with a startup business. you now seek credit from the bank to expand it. what are the steps you will have to take? 1. you support your loan application with relevant documents. 2. you fill out the loan application form at the bank 3. you get an approval for the loan and the money is disbursed to your business account 4. you use the credit to further your business plan. 5. you have an interview with the loan officer and you explain your business plan.

Answers: 1

Answer

You know the right answer?

Water is cheap and brings a diamonds are expensive and bring a a. small deadweight loss; large de...

Questions